How to Buy Property in Estonia as a Foreigner

Can foreigners buy property in Estonia?

Yes. Estonia is one of the most open real-estate markets in the European Union. Citizens of the EU, EEA, Switzerland, the United States, the United Kingdom, Canada, Japan, and most other countries can buy apartments, houses, and commercial property on the same terms as Estonian residents. No residence permit, local company, or special permission is required.

Restrictions exist only for two categories: (1) agricultural and forestry land larger than 10 hectares, which requires county-governor approval for non-EU buyers; and (2) plots on certain border islands and strategic areas, which require Ministry of the Interior approval for non-NATO/EU citizens. Standard urban apartments and houses are not affected.

Step-by-step process

1. Get an Estonian personal ID code (isikukood). Required for the land registry. Easiest path: apply for e-Residency (€100–€120, ~6–8 weeks).
2. Open an Estonian or EU bank account. LHV, Swedbank, SEB, and Wise all work. Estonian banks require AML/KYC; expect 2–4 weeks.
3. Find a property and sign a reservation agreement (broneerimisleping). Deposit is typically €1,000–€5,000, refundable if the seller withdraws.
4. Due diligence. A licensed broker (kutseline kinnisvaramaakler) checks the title, encumbrances, utility debts, energy class, and building condition reports.
5. Notary appointment. The purchase contract (asjaõigusleping + võlaõigusleping) is signed before an Estonian notary. Remote signing is possible via e-Residency digital ID (kaugtõestus, +€20 fee per party).
6. Payment via notary deposit account. Funds are released to the seller only after ownership is registered in the land registry (kinnistusraamat).
7. Land registry entry. Buyer pays state fee (riigilõiv) for the ownership change — usually €30–€2,000+ depending on price.

Taxes & ongoing costs for non-residents

• No purchase tax / stamp duty. Estonia has no transfer tax — only the notary fee and land-registry state fee.
• Land tax (maamaks). 0.1%–2.5% of land cadastral value per year, paid by the owner. Apartments in Tallinn typically pay €20–€150/year.
• Rental income tax. Non-residents pay 22% (2026 rate) on Estonian rental income, with a 20% automatic deduction for expenses (effective rate ~17.6%).
• Capital gains on resale. 22% on profit for non-residents. The sale of your sole primary residence is exempt for residents only.
• No wealth tax, no inheritance tax in Estonia.

Typical total transaction cost

For a €200,000 Tallinn apartment with a 70% mortgage and a 50/50 buyer/seller notary split, the buyer's all-in closing costs are typically €2,500–€4,500 (notary, state fees, bank fees, insurance, broker if applicable). The seller typically pays a 2–4% broker commission + VAT.

Run your own exact numbers with the Estonia property transaction calculator.

Remote transactions (kaugtõestus)

Since 2020, Estonian notaries can authenticate purchase contracts over secure video link. You need a valid Estonian e-Residency or ID card, a card reader, and a quiet location with a webcam. The notary fee includes a €20 + VAT remote authentication surcharge per party. Most non-resident buyers complete the entire purchase without ever flying to Estonia.